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An industry leader in South Korea has claimed that the construction management market there is set to double in five years and nearly triple in 10.

Construction management (CM) is a procurement method pioneered in the US and UK where the contractor manages the building project for a fee, based on a percentage of the outturn cost, instead of negotiating a maximum price for the job.

In an interview with newspaper JoonAng Daily, Kim Jong-hoon, CEO of HanmiParsons Inc., a CM firm with projects around the world, said that the CM market in South Korea is now worth around US$513 million, but is expected to hit US$1 billion by 2015 and $1.7 billion by 2020.

Kim  attributed the market forecasts to the Construction Economy Research Institute of Korea.

“As construction projects have become larger and more complex, it is difficult for building owners to manage the projects efficiently,” he told the newspaper. “Construction projects involve building owners, designers and construction firms, and there are often conflicts of interest among the parties. The construction firm mediates any disputes that arise between the parties, and it is really difficult for those who do not have an in-house construction operation. Construction management firms also ensure that construction process is transparent and fair and done on time.”